# Compound Interest meaning in English

The interest is the next period’s then earned on the principal sum plus previously accumulated-interest.

Compound-interest is a method calculating interest whereby interest-earned over time that’s added to the principal.

Meaning in English is the addition of interest to the principal sum of a deposit or loan. And deposit-compound-interest refers to the results of reinvesting, rather than paying in out.

Interest is the cost of borrowing money typically expressed as an annual percentage of a loan.

Interest-rate calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

When calculating compound interest, the number of compounding periods makes a significant difference.

Compound-interest definition math refers as the interest paid on the original principal and on the accumulated past interest. There are essentially three main types of interest-rate as following:

• The nominal interest rate
• The effective rate
• The real interest rate

It is calculated as a percentage of a deposit or loan balance. The amount is usually quoted as an annual rate.

Loan-interest rate meaning is the percentage of a loan paid by borrowers to lenders. For most loans, interest is paid in addition to principal repayment.

Or in other word, loan-interest is usually expressed in APR which include both interest and fees.

Interest-rate is the percentage of a loan compounding interest that is defines as the cost of borrowing money by borrowers. It’s calculated the rate’s depend on market or flat-rate.

Generally, the continuously compounded return is a function of time and the rate for per annum.

Bank actually use two types of interest calculations as following:

• Simple interest is calculated only on the principal amount of the loan. For example is most mortgages.
• Compound-interest is calculated on the principal and on interest earned. For example’s some loans such as personal loan.

Interest-rate is the amount charged on top of the principal by a lender to a borrower for the use of assets.

In maths, compound-interest meaning is a method of calculating interest whereby interest-earned over time’s added to the principal. ## Author: Fauzi Hashim

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